Crude is selling the headline and the physical market is not selling with it. Saudi Arabia found another route for barrels and Washington said the pipeline could be back in days. That was enough to knock November crude lower Thursday morning. It was not enough to move diesel off record highs or put more than three ships through the Strait of Hormuz. The relief trade is running on words. The supply trade is running on infrastructure that is still broken.
Oil News: Saudi Crude Route via Oman Cuts Oil Premium, but Hormuz Traffic Stays Thin
By:
Key Points:
- Only three vessels crossed the Strait of Hormuz Wednesday, keeping crude futures exposed despite Saudi workarounds.
- Saudi transfers through Oman cut the oil premium, but damaged export routes keep WTI and Brent supply risks elevated.
- Record European gasoil and U.S. diesel prices show product shortages still supporting the broader oil market.